Tesla has secured a plot of land in Shanghai for building Gigafactory 3 in the city, reports Chinese-language Wen Wei Po.
Tesla's Shanghai subsidiary signed a contract with the Planning and Land Resources Administration of Shanghai Municipality on Oct. 17 for the plot of land spanning 864,885 square meters in space in the harbor front equipment industry industrial zone. It took only three months for Tesla and Shanghai authority to reach an agreement for the deal.
The paper reports, citing website of Shanghai's realty market, that Tesla will spend 973 million yuan (NT$4.4 billion) for the land for constructing the company's first factory in China.
According to previous reports, the Shanghai factory will turn out up to 500,000 electric cars annually in two years after its inauguration, for supply to the global market. At total investment of US$2 billion, the factory will boast integrated operation, covering R&D, manufacturing, and marketing. This is the largest foreign investment in the manufacturing industry In Shanghai up to now.
The contract for the Shanghai factory has been signed, at a time when Tesla has made a breakthrough in the manufacturing of Model 3, the model with the lowest price now in the spotlight on the market, as its output and the amount of delivery already topped 50,000 cars in the first three quarters of 2018, according to data on the company's website.
The corporate data also show that delivery of the previous two models, Model S and Model X, topped 71,760 cars in the first three quarters, making the 100,000 car target for the two models in 2018 within reach.
(Collaborative media: TechNews, first photo courtesy of Tesla)